Mrs. Brown, 57, Ireland.

Occupation: Pharmacist

Marital status: Widowed

Dependants: 1 Son, Age 27

Motivation to move to a Wealth Management firm:

Mrs Brown had a large number of Pension, Personal and Business Investments that she did not understand.

Financial Concerns: Investments with differing Management Charges, Strategies, Investment Terms & Risk Profiles. No direction, Exit Strategies, Tax Planning, Income Planning or Expenditure Planning. More importantly there was no Centralised Investment Strategy.

Of the 17 different investment products sold there was no correlation or continuity between them. The Client received 17 different batches of paper a year and shoved them into a drawer.

Walfrid Private offered Ann a solution:

Walfrid Private offered Mrs Brown a Centralised Investment Process, Systematic Reporting, Transparent Charging Structure, Cost Efficiencies and Fee Based Advice.

Result:

Mrs Brown is now on the Walfrid One Platform and is in control of all her finances for the first time. Costs have been significantly reduced.

Mr O’Brien, 37, Ireland.

Occupation: Company Director – owner of a service business

Marital status: Single

Dependants: 0

Motivation to move to a Wealth Management firm:

Mr O’Brien traditionally dealt with premium based product sellers. He was introduced to us by his brother, an existing Walfrid Client .

Mr O’Brien came to Walfrid Private with concerns that he was paying personal life cover from his own bank account. He was a Company Director – owner of a service business.

Walfrid Private offered a solution:

We set him up with a more tax efficient way of paying his life cover. Much like his pension contributions were paid from his company account, his cover could be paid in the same way under an Executive Pension Term Assurance Contract. Upon claim, the proceeds would be paid to a nominated trustee who would then pass the money to his estate.

Result:

Walfrid Private achieved tax efficiencies in the way Mr O’Brien’s Risk Portfolio was paid.

Mr & Mrs Reid, 45 & 42, Ireland.

Occupation: Pharmacy Owners & Property Investors

Net Worth: €5 million

Marital status: Married

Dependants: 3 Children, Age 16, 12, 8

Investment Concerns:

a) A large property portfolio that has been in negative equity.
b) The revival of the economy and rise in property prices.

Motivation to move to a Wealth Management firm:

Potential tax loss for the estate, should both parents become deceased. The Inheritance Tax would be substantial.

Mr & Mrs Reid have a large property portfolio that has been in negative equity. The renewal of the economy and rise in property prices has concerned Mr & Mrs Reid. They envisage that their net worth is €5 million and aware that the thresholds of Inheritance Tax is low and the Tax Rate is high.

They value their assets at:
Business Value €2 million, Property Portfolio €2.5 million Cash €500 K

This means that the potential tax loss for the estate, should both parents become deceased, will be quite high. Assuming all assets were passing from the deceased parents to the children today, the following would apply:
Estate Value €5,000,000,
Inheritance Tax;
€840,000 (€280,000 relief x 3 children) = €4,160,000
Tax Rate 33% €1,386,667
*The above figures do not reflect the associated Business Reliefs for Estate Planning.

What Walfrid Private offered

Walfrid Private effected a Section 72 Inheritance Plan to shelter this large liability (a Joint Life Second Death Life Policy)

Result:

The amount of the Tax liability is insured. Once the proceeds of the policy are used to pay the Inheritance Tax Liability, it won’t form part of the Estate. The Revenue Commissioners are paid the Tax liability due and the value of the Estate is not depleted. If the Clients did not plan for Inheritance Tax they would pay a large percentage of their net worth in Inheritance Tax.

Mr & Mrs Murphy, 64 & 59, Ireland.

Occupation: Directors / Pharmacy Owners

Net Worth: €4 million

Marital status: Married 30 years

Dependants: 2 Children, Age 31 & 34

Investment Concerns:

Tax on pensions at drawdown

Motivation to move to a Wealth Management firm:

Independant advice revolving around Financial advice of Pensions.

Mr & Mrs Murphy have ran their Pharmacy for over 25 years. Mr Murphy is the Superintendent Pharmacist. Both are Directors and active in the business for more than 5 years. Both have a 50% equal shareholding for the last 25 years. The business bank balance is over €2 million

When Walfrid Private met Mr & Mrs Murphy their plan was to top up their Pensions on the advice of an existing Pension Broker and Bank. They already had funds in excess of €1 million each.

Walfrid Private offered a solution:

Walfrid Private urged Mr & Mrs Murphy to sit back, relax and take a look at what they want to achieve going forward. We advised them to consider Extraction Strategies that could be built around Succession Planning and Legacy Control, i.e. what will happen the business when they retire. We informed the couple of Retirement Relief, a Capital Gains exemption for Company Directors that meet the qualifying criteria.

Result:

No Pension contributions were made as Mr & Mrs Murphy would have been liable to Tax on drawdown due to the existing fund values. Instead the Clients engaged in Financial Planning strategies that utilised many functions of the Financial Services Spectrum. The result was that each Director was able to extract €750,000 Tax Free from the Business while bringing their children into Director level positions with a shareholding.